Survey shows that FDI plays a positive role in expanding the scale and optimizing the structure of export trade in China. Apart from the apparent trade creation effect and export structure improvement effect, FDI also brings about certain trade substitution effect and indirect trade effect. But the effect of China's indirect investment is not so obvious.
The establishment of China-ASEAN Free Trade Zone(CAFTA) can bring various utilites to China. It also enables China to cooperate with ASEAN in other fields, to take the opportunities from the regioral economy in Asia, to enhance the ability in the national negotiation and to perfect the market economy system.
Trade-affected workers are defined as employees in industries that experienced a change (positive or negative) in net total (direct and indirect) trade-related employment between 1987 and 1990.